Turtle Bay, the Piper-backed Caribbean chain, saw pre-tax profit increase by 131% to £4.5m and turnover climb from £9.9m to £26m in the year to 1 March 2015, a period in which it opened nine sites.
The group, which saw operating profit increase from £21m to £4.6m, said that since the end of the year it had secured additional funding from Santander to support its plans for 2016 and beyond.
The 23-strong group, which will open in Leeds this month, plans to add a further 12-14 sites to its estate in 2016, with openings in Exeter, Newcastle, Dalston and Liverpool already secured.
The company, which is led by Las Iguanas co-founder Ajith Jayawickrema, said that the performance of both new and existing sites continued to exceed expectation.
It said: “The successful expansion into some of these locations is encouraging and opens the door to other towns and so the opportunity for growth remains high. During 2015 we have continued our focus on development of people both internally and through recruitment. This includes adding to the senior management team.”
Comment by M&C editor Mark Wingett
Everyone likes surprises, and the success of Turtle Bay has certainly been a pleasant one for experienced sector investors Piper. That’s not to say they didn’t think the concept was a good one, and having previously backed founder Ajith Jayawickrema before at a fledgling Las Iguanas, they knew better than most his ability to turn an idea into a successful business. But they would admit that the speed in which the brand has been embraced by consumers has caught them off guard.
I understand that the majority of the group’s sites are currently averaging around £40k to £50k in sales per week. The brand has quickly proven it can work in perceived non-core locations, Huddersfield and Walthamstow anyone, and also that it can work more than once in the same city – Manchester, with Liverpool soon to follow.
It has taken the London suburbs approach to expansion in the capital, with further openings in Dalston, Streatham and Peckham believed to be in the pipeline.
Whilst investment stable mates Loungers and Be At One will undoubtedly come under the sales process spotlight next year (further highlighting Piper’s excellent recent investment record in the sector), the timescale for Turtle Bay’s own next ownership cycle must be reducing by the month. So far Jayawickrema has foregone any trade or national press intent on focusing on the brand’s growth. That may have to change as we go further into 2016.
In terms of possible suitors, surely the likes of the Casual Dining Group and The Restaurant Group will come into the mix, with the latter having already been fleetingly linked with the brand earlier this summer, plus a plethora of private equity players.
One thing is for sure, if it continues on its current trajectory Jayawickrema and Piper won’t need to bang the (steel) drum to much to generate interest.
